After exiting from Metropolis, first-generation entrepreneur G.S.K. Velu has set up a corpus of Rs.500 crore to invest in healthcare services, medical technology and growth capital for private firms.
The Trivitron group’s investment wing will become operational from January, with Mr. Velu as mentor. Chartered Accountant A. Ganeshan will be the CEO and Managing Director. Professionals and Directors for the yet to be named entity will be selected in the coming weeks.
Mr. Velu said: “We are already getting 20 enquiries per day. The investment wing will make multiple types of investment in private firms by way of growth capital ranging from Rs.30 crore to Rs.60 crore. Some of the investments will be made directly by me and rest through private equity funds. However, the management team will decide how much will be invested in each vertical. Apart from creating a corpus of Rs.500 crore, we will also seek private equity funding of Rs.100 crore.”
Mr. Velu, who declined to divulge how much he earned from selling his 37 per cent stake in Metropolis, said that apart from the investment corpus, the balance will be invested in group companies – Trivitron Healthcare, Maxivision, Apollo White Dental and Apollo Dialysis. Mr. Velu has a 70 per cent stake each in Trivitron and Maxivision and 30 per cent stakes in Apollo White Dental and Apollo Dialysis. The four companies have a combined turnover of about Rs.900 crore.
Trivitron had invested Rs.50 crore in the third unit at Sriperumbudur, which was producing lab diagnostic instruments and kits on a pilot basis, Mr. Velu said. The unit would be inaugurated next quarter.
